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Morgan Stanley Dean Witter (MWD - 101-3/4) has been on a solid run for the past three months, appreciating 63 percent from its late-May lows. After notching an all-time high on August 14, the shares have consolidated toward their 10-day moving average.
This price action has attracted call players recently. Over the past four sessions, open interest on the September 105 and 110 calls has increased by 2,800 and 2,100 contracts, respectively.
In today's action, however, the put side is active with 2,025 contracts changing hands on the September 95 put. This option has open interest of 1,621 contracts. Furthermore, today's activity went off at the ask, suggesting the initiation of new positions. This is currently the most-active put on the CBOE.